The Bangladesh Bank has declined People’s Leasing and Financial Services Limited’s request to change its name, citing the ongoing legal proceedings against the scam-ridden non-bank financial institution (NBFI), as stated in a stock exchange filing. The NBFI faced severe challenges after Prashanta Kumar Halder, former managing director of NRB Global Bank and Reliance Finance Ltd, absconded abroad following the misappropriation of Tk3,500 crore in loans, including those from People’s Leasing.
In a bid to rebrand and recover its business, the High Court-appointed board of People’s Leasing proposed a name change to Bangla Lease Finance PLC. However, the attempt was thwarted as the licensing authority refused the name alteration during an extraordinary general meeting (EGM) on December 26. The board also suggested injecting fresh capital, loan recovery, and efficient asset utilization to revive the company.
Chairman Hasan Shaheed Ferdous emphasized the need for a name change, linking the current name to fraudulence. The company, facing a 99% default rate in classified loans, seeks to attract new funds and investors to operate optimally. The company, suspended from trading in 2019, recently held its annual general meeting (AGM) for 2021 after six years.
Despite financial challenges and a history of scams, the High Court’s intervention in July 2021 reconstituted the NBFI’s board, preventing its liquidation. In December 2021, People’s Leasing reported total deposits of Tk2,661 crore and outstanding loans of Tk1,206 crore.
